Ontario raising minimum wage to $15 by 2019

Related Stories

One year before a general election, Ontario’s Liberal government is promising sweeping changes to labour laws that would benefit millions of workers, including raising the minimum wage to $15 an hour by 2019, ensuring equal pay for part-time employees and increasing vacation entitlements.

Premier Kathleen Wynne made the announcement at a campaign-style media event Tuesday, surrounded by supporters in construction and health-care unions, and activists who’d called for the minimum wage increase.

Ten per cent of Ontario workers currently make the minimum wage, Wynne said, and 30 per cent make less than $15 an hour.

“That’s millions of people, many of them supporting a family on a wage that just doesn’t go far enough,” she said. “They’re raising children, saving up for their education, wondering if they’ll ever be able to get ahead on the monthly budget, let alone own a home.”

The minimum wage increase will be phased-in gradually. It will rise with inflation, as scheduled, from $11.40 currently to $11.60 in October. Then, the government plans to bump it up to $14 an hour on Jan. 1, 2018 and $15 the following year.

Wynne also announced plans to ensure part-time workers will get equal pay for doing work equal to full-time staff, and that the minimum vacation entitlement will be increased. Instead of getting two weeks of vacation, workers will be able to get three weeks of paid vacation a year after five years with a company.

The proposed changes are in response to a government-commissioned report released last week that included 173 recommendations addressing precarious work.

The Changing Workplaces review concluded that new technology, a shrinking manufacturing sector and fewer union jobs, among other factors, have left approximately one-third of Ontario’s 6.6 million workers vulnerable.

The province’s changes to workplace laws will also establish fairer rules for scheduling, including making employers pay three hours of wages if they cancel a shift with fewer than 48 hours notice, Wynne said.

Personal emergency leave would also be expanded. Currently it is only available to employees at companies with more than 50 people, but proposed legislation would ensure all employees in the province get 10 days per year, two of them paid, Wynne said.

“Change in the workplace isn’t just on the horizon, it’s here,” Wynne said. “People are working longer, jobs are less secure, benefits are harder to come by and protections are fewer and fewer. In a time of change like this, when the very nature of work is being transformed, we need to make certain that our workers are treated fairly.”

Labour Minister Kevin Flynn said the government will table legislation on the labour law changes this week, before the house rises for the summer. The government plans to send it to committee for consultations around the province over the summer.

Flynn said that even though some of the changes — including the $15 minimum wage — will come to into force after the next election, they’re not contingent on the Liberals being re-elected.

“Any political party wants voters to feel pretty good about you when you’re going into an election, that’s part of being in politics, but it’s more than that,” he said. “Today’s really a good day for the little guy.”

The Canadian Federation of Independent Businesses (CFIB) and a new coalition of employer groups that includes the Ontario Chamber of Commerce issued statements objecting to the proposed changes.

“We are shocked and appalled that the government is broadsiding small business owners with a 32 per cent increase in the minimum wage within only one-and-a-half years,” said Julie Kwiecinski, a director with CFIB. “Small businesses, who don’t share the larger profit margins of big business, will be forced to make difficult choices, including cutting hours and jobs.”

The Keep Ontario Working Coalition, formed in response to the proposed labour law changes, warned the changes will lead to “unintended consequences, including job losses, rising consumer costs, and economic hardship.”

In response, Flynn said there’s a body of evidence that shows a higher minimum wage can benefit local economies and lead to job growth.

“This money that goes to bread, it goes to diapers, it goes to bus fares, it goes to rent,” he said. “This is money that gets spent and invested right back in the community.”

LABOUR LAW CHANGES HIGHLIGHTS

— Casual, part-time, temporary and seasonal employees will be given equal pay to full-time employees for doing equal work. There would be exceptions based on seniority and a merit system.

— Lower minimum wage rates for liquor servers, students under 18, hunting and fishing guides, and homeworkers will also rise along with the general minimum wage.

— Once an employee works for a company for five years, they will be entitled to three weeks of paid vacation.

— Personal emergency leave would no longer only apply to workers at companies with 50 or more employees. All workers will get 10 days per year, two of them paid. Domestic or sexual violence will be included as a reason for personal emergency leave.

— Employers will not be allowed to request a sick note from an employee taking personal emergency leave.

— Give unpaid leave of up to 104 weeks to parents whose children die. It is currently only offered to parents when a child’s death is related to a crime.

— Employers must pay three hours of wages if they cancel a shift with fewer than 48 hours notice.

— Employees can refuse shifts without repercussion if the employer gives them less than four days notice.

— Employees on call must be paid three hours at their regular pay rate.

— Employees will have the right to request changes to their schedule after working somewhere for three months.

— Temp agency workers must get at least one week’s notice when a job that was supposed to last longer than three months will end early. If that notice is not given, the employee must be paid the difference.

— Companies that misclassify workers as “independent contractors” instead of employees in order to skirt labour law obligations would be subject to fines.

— The maximum fine for employers who violate employment standards laws will be increased from $250, $500 and $1,000 for various violations to $350, $700 and $1,500. The government will publish the names of those who are fined.

— The maximum fines under the Labour Relations Act would increase from $2,000 for individuals and $25,000 for organizations to $5,000 and $100,000.

— Trainees will be afforded the same rights as all employees, but people on a co-op or internship program through school would not be.

— Make it easier for home care and community services workers, people in the building services sector, and those who work through temp agencies to unionize.

— Allow unions to access employee lists and certain contact information if the union can demonstrate it has the support of 20 per cent of employees.

MINIMUM WAGE ACROSS CANADA

Alberta - $12.20 an hour, rising to $13.60 this year and reaching $15 an hour on Oct. 1, 2018.

British Columbia - $10.85. It’s expected to rise to at least $11.25 this year.

Manitoba - $11. The government plans to raise it every year along with the rate of inflation.